= Homework: Module 2 Homework Question list Question 9 Question 10 Question 11 Question 12 K Question 13, P3-51 (similar to) Part 3 of 4 New England Conservatory Company (NEC) provides instrumental music education to children of all ages. Payment for services comes from two sources: (1) a contract with Music Tot School to provide private music lessons for up to 150 band students a year (where a year is 9 months of education) for a fixed fee of $154,500, and (2) payment from individuals at a rate of $115 per month for 9 months of education each year. In the 2012-2013 school year, NEC made a profit of $6,000 on revenues of $281,000: (Click the icon to view the data.) HW Score: 56.91%, 28.46 of 50 points Points: 0.75 of 3 Save NEC conducted an activity analysis and found that teaching staff wages and supplies costs are variable with respect to student-months. (A student-month is one student educated for 1 month.) Administrative staff and facilities costs are fixed within the range of 2,000-2,500 student-months. At volumes between 2,500 and 3,000 student-months, an additional facilities charge of $3,000 would be incurred. During the last year, a total of 2,300 student-months of education were provided, 1,100 of which were for private students and 1,200 of which were offered under the contract with Music Tot School. Read the requirements. Requirement 1. Compute the fixed cost per year and the variable cost per student-month using the cost information from the 2012-2013 year of operations. Fixed cost per year amount to $160000. Variable cost per student-month amount to $50. * Question 13 Question 14 Requirement 2. Suppose that in 2013-2014 Music Tot School decreased its use of NEC to 100 students (that is, 900 student-months). The fixed contract price of $154,500 was still paid. If everything else stayed as it was in 2012-2013, what profit or loss would be made in 2013-2014? Complete the table below to calculate the profit or loss for 2013-2014 assuming that Music Tot School decreased its use of NEC to 100 students (that is, 900 student-months) but that everything else stayed the same from 2012-2013. Total revenues Question 15 * Question 16 Question 17 $ 281,000 95000 Variable costs Total contribution margin 186000 Fixed costs 160,000 26000 Profit (Loss) Help me solve this Video Get more help Clear all Check answer